The details
As mortgage rates stabilize and more homes become available, this area is expected to attract even more homebuyers in the coming year, according to a Dec. 12 news release from NAR.
Mortgage rates are expected to stabilize around 6% in 2025, according to NAR. The association predicts 4.5 million existing home sales, with a median home price of $410,700, reflecting a 2% increase from previous years.
“Home buyers will have more success next year,” said Lawrence Yun, chief economist and senior vice president of research for NAR, in the release. “The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve homeownership.”
Yitzchak Pierson, a Realtor with eXp Realty LLC in New Braunfels, noted that the real estate market in the San Antonio-New Braunfels area has experienced growth.
“New Braunfels went from roughly 57,000 population in 2010 to an estimated population of 117,000 in 2024,” Pierson said. “We’ve seen more stabilized home prices over the last year but continued housing demand.”
A closer look
The full list of the 10 top housing hot spots for 2025, in alphabetical order, includes:
- Boston-Cambridge-Newton, Massachusetts-New Hampshire
- Charlotte-Concord-Gastonia, North Carolina-South Carolina
- Grand Rapids-Kentwood, Michigan
- Greenville-Anderson, South Carolina
- Hartford-East-Hartford-Middletown, Connecticut
- Indianapolis-Carmel-Anderson, Indiana
- Kansas City, Missouri-Kansas
- Knoxville, Tennessee
- Phoenix-Mesa-Chandler, Arizona
- San Antonio-New Braunfels, Texas
NAR based the list on key economic, demographic and housing factors, according to the release. The factors used to determine the top housing hot spots for 2025 are:
- Share of locked-in homeowners
- Average mortgage rate
- Job growth
- Share of millennial renters who can afford to buy a home
- Net migration to population ratio
- Share of households reaching homebuying age in the next five years
- Share of out-of-state movers purchasing a home
- Share of homeowners surpassing the average length of tenure
- Share of starter-owner occupied units
- Home price appreciation
Pierson pointed to several factors contributing to New Braunfels’ recognition, including population growth and housing demand.
“New Braunfels continues to see steady migration from other states, particularly from major metro areas like New York, Los Angeles, Dallas and Salt Lake City,” he said.
According to Pierson, here is why New Braunfels is recognized as a hot spot for housing in 2025:
- Population growth: The city’s population has grown from 57,000 in 2010 to an estimated 117,000 in 2024.
- Housing demand: Despite stabilized home prices, housing demand remains strong.
- Migration: People are moving to New Braunfels from larger cities, drawn by its quieter pace and proximity to San Antonio and Austin.
- Job market: A thriving economy and job market make the area attractive to professionals and families.
- Quality of life: Natural attractions, community events and a family-friendly atmosphere add to the city’s appeal.
- Affordability: Compared to Austin and Dallas, New Braunfels offers more affordable housing.
- Development: New residential communities like Veramendi and Mayfair meet growing demand while preserving the city’s charm.
